EUR: Manufacturing is attempting to save the day.

The manufacturing sector’s success is one of the few bright spots in Europe right now. Fortunately, Europe is well placed to benefit from this, and the release of a strong collection of manufacturing PMIs can help Europe withstand the effect of renewed continental lockdowns on the service sector.

We also take note of the new IMF COFER data on the currency composition of foreign exchange reserves, which was issued overnight. The EUR share increased from 20.57% to 21.24% in 4Q20, while the USD share decreased from 60.49% to 59.01% . This multi-year pattern is expected to continue.